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I want to try Pay for Delete letter but have questions and need advice please!!


jessicashea685
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Hello all!!  I'm a first time user, so I'd first like to say thank you in advance for any help any of you can provide me with!!

 

I have recently pulled my credit report for the first time and have found 5 collection accounts that are all attributed to medical bills,  The highest one is $322 and the lowest is $25, there were a lot of bills coming in at that time, and I think these ones just got lost in the shuffle.  I have the financial ability to pay them all in full so I thought the Pay for Delete option would be best for me.  One of my main questions is, 3 of the collections listed are with the same collection agency, GLA Collections, would it be beneficial for me to combine all 3 accounts in my pay for delete letter or should I send a separate letter for each account number?

 

Or, is there a different route I should use? 

 

Another question I have, besides those collection accounts all of my other accounts (Car payment and credit card) are all paid as agreed with no negative feedback since they were opened in 2011.  If the Collection agencies refuse to accept my pay for delete offer, I feel I should go on and pay the debts, meaning they will show as paid on my credit report, but how would a mortgage lender see those.  Would the fact that I have good marks on my revolving credit and installment trump the fact that I had medical bills that were sent to collections but have been paid?

 

Thank you again for any feedback you can provide me with!!! 

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DO NOT DEAL WITH THE CAs.  Call the medical offices and ask for billing.  Tell them "...oh my god, the insurance must have overlooked this...and after you guys took such good care of me...I'm so sorry...I'll send you a check today...and, oh by the way, can you call off the CAs".  you may have to play some games with the office staff to get to the billing person, but pay the original creditor.

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A guy on another forum tried to pay for a delete, even recorded the guy saying he would delete the TL when he got the money. The guy paid and the JDB refused to delete, even laughed at him when he told the JDB that he had recorded the call. That's why I say, never pay a JDB or CA for a PFD. You will get suckered just like he did.

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DO NOT DEAL WITH THE CAs.  Call the medical offices and ask for billing.  Tell them "...oh my god, the insurance must have overlooked this...and after you guys took such good care of me...I'm so sorry...I'll send you a check today...and, oh by the way, can you call off the CAs".  you may have to play some games with the office staff to get to the billing person, but pay the original creditor.

 

I would have never have thought to contact the doctor's office!  I thought that once it was passed on to the collection agencies the medical provider no longer owned it and therefore wouldn't accept payment.  Good to know!!

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CAs don't buy debts.  Junk debt buyers (JDBs) buy debts.  But, both original creditors (OCs) and JDBs hire CAs to do the hassling for them.  Medical debts are seldom sold.  Once the OC is paid, the CA has no legal right to report to the credit reporting agencies (CRAs), but you may have to dispute with the CRAs as "not mine" to get them to go away.

 

Incidently, JDBs buy debts for pennies on the dollar from the OC (who takes a loss on their income tax) are often corporations formed with doctors and dentists and other professionals as "shareholders" who are looking for a quick return on their investments.

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DO NOT DEAL WITH THE CAs.  Call the medical offices and ask for billing.  Tell them "...oh my god, the insurance must have overlooked this...and after you guys took such good care of me...I'm so sorry...I'll send you a check today...and, oh by the way, can you call off the CAs".  you may have to play some games with the office staff to get to the billing person, but pay the original creditor.

If I spoke with and paid the OC and asked that they reach out to the CA, why wouldn't the CA just mark the debt as paid instead of removing it completely?  Thank you so much for your help!!!  I'm trying to understand, but it's all so confusing!! ::daisy::

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If anything, you want it REMOVED, not just paid as that can hurt you almost as much as having it on your TL. Either get the OC the Doctors office to remove it with a letter so stating that they will prior to paying, or for get it. The OC is the only one that can really help you. Just because you pay the CA may not mean that the OC will remove their TL on your CR. In that cas, what have you accomplished?

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If I spoke with and paid the OC and asked that they reach out to the CA, why wouldn't the CA just mark the debt as paid instead of removing it completely?

You have a debt to the OC...not to the CA.  Usually, if you ask politely, the doctor's billing person will inform the CA that they're no longer needed.  (Doctor billing offices sometimes have an inflated opinion of themelves...so be careful how you treat them).

 

but, in any regard, once the OC is paid, the CA has no legal reason to report anything about you to the CRAs.  If it doesn't disappear from your reports, dispute it with the CRAs.  If it comes back verified, send a letter to the CA, Certified Mail Return Receipt Requested (CMRRR) saying, in effect, "....hey, I found you listed on my CRs...I never had an account with you people...prove to me otherwise, or I'll be forced to purse my legal options under the FDCPa and FCRA...".

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Even if you can't deal with the OC, you have something they want. They want your money. You decide what they must agree to get your money. Unless you are buying a house in the next two months, you have options. So don't buy a house in the next two months. And with a CA or JDB, it is always an alleged debt.

 

If you go down the PFD road, the only acceptable terms are with a trade line deletion otherwise it doesn't really help you that much. I have had plenty of luck with a timely DV, a CR dispute, followed up a while after with a BBB complaint. Sometimes all it takes is a strongly worded letter with copies of bills, insurance explanation of benefits and creativity with a highlighter to make them delete.

 

I printed out some statements from a medical collection on my wife's reports and highlighted some random stuff and referenced it in my dispute and they removed. It's a patience game. A year ago I was scared and getting sued by a JDB. Now if a CA or JDB rears their ugly head, I just giggle a little because I'll have something to do. I went from a score in low 500's to an average of 680. It's a campaign.

 

It becomes addicting.

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Could you deal with the OC when it comes to a judgement? Pay for Delete...

 

Does the OC still own the debt or was it sold to a JDB? Once it is sold, you have to deal with the JDB. The OC will show as a 0 balance and reference that the debt was sold to another lender in the trade line. Once it is sold, the OC will not accept payment for delete. Then it is time to goodwill, nag, letter campaign, sue them into deleting the listing.

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Thank you all for your advice, I called the OC this morning and they have been very helpful.  They are sending me over statements today so I can pay all of these off, they said they would then call off the CA's.  I'm excited to see how it all turns out.  I'm super glad I asked the question, I was about to make it much more difficult on myself than what it had to be!!

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I agree you should try and call the medical provider and see if they will recall the collection.  If so, the collection agency should remove the collection.

 

However, I still think pay for delete works.  Especially with medical collections.  I know of many cases where they did remove the listing.  

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I agree you should try and call the medical provider and see if they will recall the collection.  If so, the collection agency should remove the collection.

 

However, I still think pay for delete works.  Especially with medical collections.  I know of many cases where they did remove the listing.  

 

This I agree with........

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  • 3 months later...
Guest haniyyah

There's a lot of great advice here.

I have utilized this method often ( for business) and  i found it easier to start with the JDB/ Collection Agency listed on your credit report. Sometimes the agency will list debt they no longer own which is illegal. Start by calling/writing to ensure they do currently own this account.

 

In the event the CA still owns the account, you can establish an agreement with them to "pay for deletion" but it is very important for you to confidently lay out the terms of the agreement that are satisfactory to your credit file and within legal means. Or, if you would prefer to deal with the Original Creditor, you must first request the CA to Cease & Desist all action on the account, notifying them that u will only deal with the Creditor. Again, this causes the CA to remove their information from your credit file because they cannot report  debt they do not own any longer. 

 

Be sure not to send any money until the agreement is in writing and legalized. 

 

Once this is complete, you have paid off your debt, and removed the reporting from your credit file. 

 

i wouldn't recommend paying off the debt to the CA, with out some type of agreement, as this allows them to "update" the account and it can continue to show on your report for an additional 7yrs, still as a negative account. Not always but they can legally do so unless you ask them not to, or request for them to "re-age" the account to reflect no late payments or defaults.

 

 

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There's a lot of great advice here.

I have utilized this method often ( for business) and  i found it easier to start with the JDB/ Collection Agency listed on your credit report. Sometimes the agency will list debt they no longer own which is illegal. Start by calling/writing to ensure they do currently own this account.

 

In the event the CA still owns the account, you can establish an agreement with them to "pay for deletion" but it is very important for you to confidently lay out the terms of the agreement that are satisfactory to your credit file and within legal means. Or, if you would prefer to deal with the Original Creditor, you must first request the CA to Cease & Desist all action on the account, notifying them that u will only deal with the Creditor. Again, this causes the CA to remove their information from your credit file because they cannot report  debt they do not own any longer. 

 

Be sure not to send any money until the agreement is in writing and legalized. 

 

Once this is complete, you have paid off your debt, and removed the reporting from your credit file. 

 

i wouldn't recommend paying off the debt to the CA, with out some type of agreement, as this allows them to "update" the account and it can continue to show on your report for an additional 7yrs, still as a negative account. Not always but they can legally do so unless you ask them not to, or request for them to "re-age" the account to reflect no late payments or defaults.

@haniyyah - I agree, it is vital to secure a written agreement when doing pay for delete.  Without that, the settlement never happened.  

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